r n 3\  ^ 


“UNIVERSITY  EXTENSION.” 

DULUTH,  MINNESOTA.  SEASON  OF  1891-92. 


Principles  of  Economics. 

Professor  &/ILUAM  W.  FOLWELL,  LL.  D. 


ocrionsr . 


Sec.  1.  HISTORY. 

Blanqui,  at  large, 

Marshall,  introduction, 

Mill, 

Perry,  “ 

Lalor,  Cyc., 

Encyc.  Brit.,  8th  and  Oth  Eds. 

a.  Economics  a modern  science. 

b.  The  great  schools. 

(1)  Mercantile,  to  1750, 

(2)  Physiocratic,  1750-75, 

(8)  Industrial,  from  1776. 

c.  Minor  schools. 

(1)  Nationalist, 

(2)  Socialist, 

(8)  Historical. 

Sec.  2.  BIBLIOGRAPHY. 

(1)  Histories  of  Political  Economy. 

Blanqui,  Duehring,  Ingram,  &e. 

For  sketches,  see  Mill,  Perry,  Marshall,  Encyc.  Brit  . 

(2)  Cyclopedias. 

Lalor,  Cyc., 

Dictionnaire  de  Economique  Politique. 
Schoenberg’s  Handbuch  der  Politiscben  CEconomie, 
McCulloch’s  Commercial  Dictionary. 

(3)  General  Treatises. 

Adam  Smith, 

Mill,  T.  S., 

Cairnes, 

Marshall, 

Walker, 

Wayland,  

Sismondi, 

Cherbuliez, 

Roscher.  * 


(4)  Special  Treatises. 

Maltbus  on  Population, 

Ricardo  on  Rent, 

Cairnes  on  Method, 

Jevons  on  Money, 

Brentano  on  Gilds, 

Lavaleye  on  Property, 

Walker,  F.  A.,  on  Wages, 

Thornton  on  Wage  Fund, 

Tooke  oil  Prices. 

(5)  Society  Publications. 

American  Economic  Association, 

American  Academy  of  Political  and  Social  Science, 
American  Association  for  the  Advancement  of  Science, 
British  Association  for  the  Advancement  of  Science, 
American  Association  for  the  Promotion  of  Social  Science, 
British  Association  for  the  Promotion  of  Social  Science, 
Cobden  Club,  &c. 

(fi)  Statistics. 

Mulliall,  Dictionary  of  Statistics, 

Journal  of  the  Statistical  Society  (of  England), 

Statesman’s  Year  Book, 

American  Almanac, 

Reports  of  Boards  of  Trade, 

Reports  of  Bureaus  of  Statistics, 

XT.  S.  Census  Reports, 

State  Census  Reports,  &c. 

(7)  Government  Reports. 

U.  S.  Finance  report, 

State  (including  city  and  county)  financial  reports, 

State  and  National  Bureaus  of  Labor,  &c. 

(8)  Reviews. 

A.  Economic: 

Quarterly  Journal  of  Economics, 

Political  Science  Quarterly, 

The  Economist,  &c. 

B.  Other  Reviews: 

North  American, 

Forum, 

Century, 

Fortnightly,  &c. 

(9;  Newspapers. 

The  Nation, 

Bradstreets. 

The  Independent, 

The  Christian  Union, 

The  great  dailies  generally, 

The  Pioneer  Press. 

GO;  Catalogues. 

Congressional  Library, 

The  American  Catalogue, 

Those  of  any  large  public  or  institutional  libraries, 
Booksellers’,  esp.  Putnam’s,  Robert  Clarke  & Sons’,  &c. 

(11)  Cossa’s  Guide. 

Good  working  lists,  in  Blanqui,  Mill,  Perry.  Ely’s  Introduc- 
tion. &c. 


Sec.  3.  DEFINITIONS. 

See  Oossa, 

Perry, 

Marshall, 

Schoenberg, 

and  any  general  treatises. 

1.  Political  Economy  is  that  branch  of  Sociology  which  treats  of 

MAN  as  he  obtains  his  subsistence  and  the  satisfaction  of  his 
desires,  by  applying  his  faculties  and  powers  to  the  materials 
and  forces  of  NATURE;  or,  for  shortness, 

2.  ECONOMICS  IS  THE  SCIENCE  OF  INDUSTRY. 

Sec.  4.  POSTULATES. 

1.  A General  Providence, 

2.  Freedom, 

3.  “ The  Principle  of  Parsimony,” 

4.  Self-Interest, 

5.  Social  Interest, 

6.  The  Institution  of  Propert  y, 

7.  Advancing  Society, 

8.  The  State. 

Sec.  5.  MAIN  ANALYSIS. 

See  Cossa.  Chap.  2. 

(1)  Primary  division  into, 

A.  Private  (or  soci  al), 

B.  Public  (or  national). 

The  latter  division  is  not  treated  in  this  Course. 

(2)  Further  subdivision  of  Private  Economics. 

See  any  of  the  Treatises. 

Part  1,  Book  1.  Consumption, 

Book  2.  Production, 

Part  II,  Book  3.  Distribution, 

Book  4.  Exchange. 

Remarks  on  the  order  of  these  topics. 

Sec.  C.  LOGICAL  METHOD. 

See  Cairnes,  Logical  Method  in  Political  Eeconomj", 

Mill’s  Logic,  Vol.  II. 

Sec.  7.  IMPORTANCE  OF  ECONOMICS. 

due  to— 

a.  Increase  of  population, 

b.  Increase  of  wealth, 

c.  Elevation  of  the  working  people, 

d.  Inequality  of  economic  conditions, 

e.  Economic  conditions,  fundamental,  &c. 


REFERSUC  E. 


The  following  works  will  be  referred  to  by  the  abbrevia7 
tions  in  heavy-faced  type: 

Blanqui,  A.  History  of  Political  Economy,  translated  by  Emily  J. 

Leonard.  N.  Y.,  1880.  BLANQUI. 

Cairnes,  J.  E.  Leading  Principles  of  Political  Economy.  N.  Y.,  1874. 

CAIRNES. 

Cossa,  L.  Guide  to  the  Study  of  Political  Economy.  London,  1880. 

COSSA. 

Cyclopedia  of  Political  Science  and  . . . 3v.  8o.  Chicago. 

LALOR,  CYC. 

Marshall,  A.  Principles  of  Economics.  London,  1891. 

MARSHALL. 

Mill,  J.  S.  Principles  of  Political  Economy.  Edited  by  J.  L.  Laugh- 
lin.  N.  Y.,  1884.  MILL. 

Perry.  Political  Economy.  18th  Edition.  N.  Y.,  1887. 

PERRY. 

Roscher,  Win.  Principles  of  Political  Economy.  2v.  8.  Translated 
by  John  J . Lalor.  N.  Y.,  1880.  ROSCHER 

Smith,  Adam.  Wealth  of  Nations.  McCulloch’s  edition.  London, 

n.  d.  ADAM  SMITH. 

The  following  shorter  treatises  may  be  profitably  read 
and  examined  along  with  this  course: 

Chapin,  Recast  of  Wayland. 

Ely’s  Introduction  to  Political  Economy. 

Gide,  Principles  of,  &c. 

Lavaleye,  Elements  of,  &c. 

Walkep.,  F.  A.,  Short  Course  in,  &c. 

The  following  topics  for  essays  are  given  as  appropriate 
to  our  Introduction: 

Biographical  Sketches  (with  special  reference  to  economic  writings) 
of  Adam  Smith,  Ricardo,  Malthus,  J.  B.  Say,  J.  S.  Mill,  Cairnes, 
Jevons,  Sismondi,  Quesnay,  St.  Simon,  List,  Carey,  Karl  Marx.  La 
Salle,  Fourier,  Robert  Owen,  Colbert,  Turgot. 

A critique  of  the  doctrines  of  the  Mercantile  School, 

A critique  of  the  doctrines  of  the  Physiocratic  School. 

An  Exposition  of  Socialism,  old  and  new, 

The  position  of  the  Historical  School, 

Relations  of  Carey  and  List, 

A collection  and  comparison  of  the  definitions  of  political  economy, 
The  selfish  principle  in  economics, 

The  institution  of  property, 

The  proper  order  of  treating  the  four  great  primary  divisions  of 
private  economics. 


2 

“ UNIVERSITY  EXTENSION.” 

DULUTH,  MINNESOTA.  SEASON  OF  1891-92. 

F RINCIPLES  OF  ECONOMICS. 

Professor  WILLIAM  W.  FOLWELL,  LL.  D. 


PART  I,  Book  I,  CONSUMPTION. 


SeeLalor,  Cyc.  Art.  Consumption;  Roscher,  2J83;  Marshall, 
Book  III,  p.  147;  Walker,  297;  Moifat,  Economy ,of  Con- 


sumption. Chap.  I;  Schoenberg,  XlT,  1,  505; 
liez.  Science  Economique,  Chap.  X;  Gide,  361. 


[herbu- 


CHAP  I.— PHENOMENA  OF  CONSUMPTION. 


Sec.  1.  Subjective  View— HUMAN  WANT  and  DESIRE. 


a.  Primary— Physical : 

See  Hutchinson’s  Physiology,  p.  83  f.;  Bowker,  Economics, 
pp.  232-234;  Roscher,  2,  202-227,  n.  2;  Buck,  Public 
Health,  1, 194;  Proceedings  3d  Annual  Report  Conven- 
tion of  Chiefs  of  Bureaus  of  Labor,  Boston,  1885;  Ar- 
ticle, Statistics  of  Consumption,  by  Edward  Atkin- 
son, p.  42,  and  Chemistry  and  Economy  of  Food,  by 
W.  O.  Atwater,  p.  85;  Ely,  p.  281;  Dodd,  Food  of  Lon- 
don, p.  147. 

Air. 


(1) 

(2) 

(B) 


(4) 


Food  and  drink. 
Heat,  by 

Clothing  and 
Shelter. 
Light. 


b.  Secondary— Spiritual: 

(5)  Intellectual. 

(6)  Asthetic. 

(7)  Religious. 

(8)  Social. 

(9)  Political. 

See  Bastiat,  Harmonies  of  Political  Economy,  p.  72;  George, 
H.,  Progress  and  Poverty,  p.  119. 


Fundamental  Law  of  Economics: 

Human  Wants  are  universal,  continuous,  progressive  and  cumulative. 

Sec.  2.  Objective  View— HUMAN  USE,  &c. 

A.  Use-Consumption— in  satisfaction  of  wants,  by  common  con- 

sent, reasonable  and  justifiable. 

See  Bowker,  Economics,  p.  229. 

Roscher,  2, 184. 

Ely,  281. 

B.  Loss-Consumption.  See  Roscher,  2, 189,— through 

(1)  Destruction  by  Nature: 
a.  Inanimate: 

Ordinary,  e.  g.,  wind  and  weather;  rain,  snow  and  hail; 
rust  of  metalic,  decay  of  animal,  rotting  of  vegetable 
substances. 

Extraordinary,  e.  g.,  earthquakes,  volcanic  eruptions, 
avalanches,  and  “tidal  waves”;  drouth  followed  by 
famine  and  pestilence,  lightning,  inundations,  &c., 
&c.  See  Walford,  Famines  of  the  World,  London,  1879. 

b.  Animat: 

1.  Damages  by  animals. 

Large,  (not  now  great). 

Small  e.  g.  rabbits,  rats  and  mice,  fowl,  &c. 
Insects,  e.  g.  locusts,  Hessian  fly,  chinch  bug, 
moths  and  beetles,  caterpillar,  &c.  &c. 

2.  Damages  by  vegetables,  e.  g. 

Rust,  mildew,  potatoe  rot,  phylloxera,  blights,  &c. 

(2)  Disease  and  premature  death  of  men  and  animals. 

(3)  Miscalculation  and  misadventure. 

(4)  Loss  incidental  to  industry ; 

Seed  grains, roots,  &c., drainage  and  fertilizing,  wear  and 
tear,  protection  of  crops,  protection  of  animals,  protec- 
tion of  produce,  &c. 

C.  Waste-Consumption,— by 

(1)  Ignorance  and  neglect,  (2)  Crime,  (3)  Intemperance,  (4)  Ill- 
advised  strikes  and  lockouts,  (5)  Unjustifiable  war,  (6)  Folly 
and  luxury.  As  to  “Luxurious  Consumption,”  See  Ros- 
cher  2,  221,  Ra-udrijlart.  Historic  de  Luxe,  Paris,  1880,  Gide, 
369,  LecjcyTnist.  of  Rationalism,  2,  275, 

Sec.  3.  Law  of  consumption. 

Consumption  tends  to  indefinite  but  not  unlimited  increase. 

CHAP.  II. — CON DITIONS  OF  CONSUMPTION. 

Sec.  1.  In  nature. 

a.  Habitat  and  especially  climate. 

See  Guizot  Hist.  Civilization,  p,  87. 

Montesquieu  l,  326. 

Milton’s  Paradise  Lost,  Bk.  x.  651. 


Sec.  2.  In  human  nature. 

t>.  Stage  of  civilization;  savage,  barbarian,  civilized;  pastoral, 
cultivating,  industrial. 

c.  Religion;  priesthood,  temples,  ritual,  holidays,  regulation  of 

diet,  dress,  &c.  See  Montesquieu  by  index. 

d.  Culture;  Education,  science,  art  (inc.  music),  literature  (inc. 

drama). 

e.  Custom,  habit  and  fashion;  hospitality.  See  Adam  Smith, 

323,  725,  marriages  and  funerals,  social  celebrations,  narcot- 
ics and  stimulants,  dwellings,  dress;  see  Maine  Pop.  Gov’t. 
142,  frusral  and  spendthrift  nations;  Roscher,  2,  217,  standard 
of  living. 

f.  Government;  kind  of;  efficiency  in  general;  as  to  sumptuary 

laws,  &c. 

g.  Neighbor-peoples;  friendly  or  hostile,  agricultural  or  manu- 

facturing, monopolizing  products,  &c. 


CHAP.  III.— LIMITS  OF  CONSUMPTION. 

Sec.  1.  In  nature,  by 

Area  of  land. 

Elementary  substances,  as  to  number,  and  their  supply. 

Sec.  2.  In  human  nature,  by 

The  number  of  consumers,  i.  e.,  by  POPULATION. 

On  the  “ Population  question.” 

See  Malthus,  Goodwin,  Alison,  Sadler,  Gamier,  Wallace, 
Thornton,  Pomeroy,  &c. 

Schoenberg,  XXIV,  p.  1203,  for  elaborate  discussion 
by  Ruemelin. 

Independent,  June  9, 1890. 

Encyc.  Brit.  8th  ed.  article,  Colony  by  J.  S.  Mill. 
Westminister  Rev.,  October  1890  and  Jan.,  1891. 
Poole’s  index  for  periodical  material  generally. 

a.  The  Malthusian  doctrine  of  population,  stated 

and  discussed. 

See  Malthus,  1,  pp.  2-14. 

George,  H.,  Progress  and  Poverty,  p.  81. 
Arnold,  Matthew,  Culture  and  Anarchy,  p. 
204,  Gide,  320. 

b.  The  “Principle  of  Population”  restated. 

1.  Population  tends  to  outrun  subsistence. 

2.  Opposing  tendencies. 

(a)  Temporary, mostly  increasing  food  supply— 
Colonization  and  emigration,  war,  disease 

and  famine,  improved  agriculture,  dis- 
covery of  new  food  plants,  new  processes  of 
preserving  food,  improved  transportation, 
improved  distribution,  improved  land 
policy,  &c. 

(b)  Permanent,  checking,  fecundity- 
physiological  effects  of  civilization. 
Psychological  effects  of  civilization. 

See  Spencer,  II.,  Biology,  2,  478  f. 

Walker,  310. 


ADDENDA, 


1.  Various  meanings  of  the  word  consumption. 

2.  Close  relations  of  consumption  and  production. 

3.  Consumption  fundamental  in  economics. 

4.  Personal  applications. 


ADDITIONAL  REFERENCES. 


Ely.  Introduction  to  Political  Economy.  N.  Y.,  1889. 

ELY. 

Gide.  Elements  of  Political  Economy.  Boston,  1891. 

GIDE. 

Malthus,  T.  R.  The  Principal  of  Population.  London.  1776-1834. 

MALTHUS. 

Montesquieu.  Spirit  of  the  Laws.  London,  1773. 

MONTESQUIEU. 

Walker  F.  A.  Political  Economy.  N.  Y.,  1884. 

WALKER. 


TOPICS  FOR  ESSAYS. 


1.  How  great  cities  are  fed. 

2.  The  great  plague  of  1348. 

3.  The  Irish  famine  of  1848. 

4.  The  cost  of  intoxicants  and  their  use  in  Duluth. 

5.  Is  the  luxury  of  the  rich  a blessing  to  the  poor  ? 

6.  Climate  as  a determinant  in  civilization. 

7.  How  a laborer’s  family  of  five  persons  live  in  Duluth. 

8.  The  evolution  of  the  house. 

9.  Cost  of  bad  cookery  in  U.  S. 

10.  The  negro  population  question  in  U.  S. 


3 


“ UNIVERSITY  EXTENSION.” 

DULUTH,  MINNESOTA.  SEASON  OF  1891-92. 


Principles  op  Economics. 

Professor  WILLIAM  W.  FOLWELL,  LL.  D. 


PARTI.,  Book  i,  PRODUCTION. 

For  general  treatment,  see  any  of  the  treatises  referred  to  See 
also  Lalor,  Cyc.,  Art.  “Production  of  Wealth,”  and  Schoen- 
berg V,  p.  161  f. 

DEFINITION:  Production  is  the  appropriation  and  adapta- 
tion of  the  materials  and  forces  of  nature  to  the  satis- 
faction of  human  wants  and  desires. 

CHAP.  I.— PHENOMENA  OF  PRODUCTION. 

Sec.  1.  Agents  of  Production. 

For  view  here  presented,  see  Adam  Smith  266,  Gide  125,  Mill 
53. 

For  view  commonly  taken,  which  includes  capital  as  a third 
agent,  see  Marshall,  191;  Walker,  42  (§.  42);  Roscher,  1,  119  and 

163. 

The  Agents  of  Production  are: 

1.  Nature,  contributing, — 

Matter,  i.  e.,  LAND,  and 
Force,  in  all  forms. 

See  Encyc.  Brit.,  9th  ed.  by  index. 

2.  Man,  contributing  LABOR. 

“ Labor  is  man’s  action  upon  nature  to  supply  his  wants.” 

— Lavaleye. 


Sec.  2.  Results  of  Production, 


N.  B.— Negative  results  may  be  neglected. 

I.  Satisfaction  of  wants  through  SERVICES,  (immaterial  product.) 

II.  Satisfaction  of  want  through  WEALTH  or  “economic  goods,” 
(material  produce.) 

A.  Proximate  satisfaction  through  goods  ready  for  and 

devoted  to  consumption. 

B.  Ultimate  satisfaction  through  goods  adapted  to  and 

reserved  for  further  productive  processes. 

. . “CAPITAL”,  separating  into— 

(1)  Goods  to  he  operated  on,  called  RAW  MATE- 

RIALS. 

(2)  Goods  to  operate  with,  called  INSTRUMENTS, 

which  include:  Tools,  implements  and  ve- 
hicles, machines,  chemical  re-agents,  animals, 
LANDS,  money,  &c. 

DEFINITIONS : 

Service,  labor  performed  for  another. 

Wealth,  the  sum  of  material  produce. 

Capital,  wealth  reserved  for  further  production. 

Discussions  upon  Labor,  Wealth,  Capital  and  Service  form  large 
parts  of  all  treatises  on  Economics.  For  novel  and  striking  views  refer- 
ence may  be  made  to  the  following: 

Clark,  J.  B.  Philosophy  of  Wealth.  Boston,  1886. 

Bastiat.  Pol.  Econ.,  p.  347.  Chicago,  1869. 

Perry,  48,  66,  69,  81,  86, 137. 

Marshall,  p.  135.  Historical  note. 

Polit.  Sci.  Quar.,  Mar.  1891,  p 126.  Review  of  Marshall,  by  J.  B. 
Clark. 

Karl  Marx,  On  Capital,  early  chapters. 

The  subject  of  capital  is  much  discussed  in  connection  with  that  of 
interest. 


Sec.  3.  Remarks  on  Labor,  Wealth  and  Capital. 

1.  ‘"Productive  labor”  a tautology;  explain  historically. 

2.  Labor  in  the  last  analysis,  motion  and  thought. 

3.  Not  all  matter  is  or  can  be  wealth;  only  that  which  is  produce. 

4.  Definition  of  economics  as  the  “science  of  wealth.”  too  narrow. 

5.  Capital  is  some  fraction  of  wealth  and  is  alternatively  analyzed 

as  active  or  dormant,  individual  or  social,  fixed  or  circulat- 
ing, autonomous  or  loanable. 

6.  Strength,  skill,  intelligence,  honesty,  &e.,  not  capital. 

7.  Surplus  subsistence  only,  capital. 

8.  Money,  but  a part  of  capital. 

9.  Credit,  not  capital. 

10.  Capital,  not  “stored-up  labor.” 

11.  Capital,  not  an  “agent”  in  production.  Capitalists  are  co-pro- 

ducers and  increase  their  efficiency  by  employing  materials 
and  instruments. 

12.  Capital,  segregated  from  wealth  by  abstinence,  invention  and 

enterprise. 

13.  Private  ownership  of  capital,  not  essential  to  its  effective  em- 

ployment. 

14.  Lands,  properly  classed  as  capital. 

Sec.  4.  Forms  of  Production. 

A.  Primary  grouping, 

Group  I.  Discovery  and  collection,  e.  g.,  fishing,  hunting, 
&c. 

Group  II.  “The  industries” — agriculture,  manufactures, 
commerce. 

Group  III.  The  professions,  e.  g.  — divinity,  medicine,  law, 
education,  art. 

B.  Further  differentiation. 

1.  Separation  of  “industries”  into  specialties,  e.  g.,  agricul- 

ture into  grain,  stock  and  fruit  farming;  manufactures 
into  textile,  metal  and  chemical,  &c.;  commerce,  into 
wholesaling,  carrying,  retailing,  &o. 

2.  Further  separation  of  specialties  into  employments, 

e.  g.,  in  woolen  manufactures,  dyeing,  carding,  spin- 
ning, weaving,  &c. 

3.  Fur*ther  separation  of  employments  into  processes. 

This,  commonly  called  “the  division  of  labor,”  — on 
which, 

See  Adam  Smith  19,  Mill  104,  Marshall  310,  Plato, 
Republic,  Bohn’s  trans.  ed.  149,  Gide  158,  and 
any  of  the  treatises. 


Sec.  5.  Amounts  of  Production. 

Topic  merely  suggested.  The  quantitative,  study  of  economics, 
only  began.  Consult:  Statistics  a developing  science. 

Consult: 

Mulhall,  Diet,  of  Statistics. 

McCulluch’s  Commercial  Dictionary. 

Reports  of  TJ.  S.  and  State  censuses. 

Reports  Bureaus  of  Labor. 

End  of  Chap.  I. 


TOPICS  FOR  ESSAYS. 


1.  Examine  the  statement,  “The  requisites  of  production,  are  land, 

labor  and  capital.” 

2.  Examine  Bastiat’s  doctrine  of  services. 

3.  Criticize  the  definition,  “Economics  is  the  science  of  wealth.” 

4.  Examine  J.  B.  Clark’s  definition  of  capital. 

5.  Explain  the  phrase,  “Productive,  consumption.” 

6.  Wh  at  k ind  of  capital  is  coin  ? 

7.  Examine  the  statement,  “Capital  produces  no  value.” 

8.  The  separation  of  law  and  medicine  from  divinity 

9.  Is  teaching  yet  a profession? 

10  The  wheat  crop  of  1891;  a study  in  statistics. 


4 


“UNIVERSITY  EXTENSION.” 

DULUTH,  MINNESOTA.  SEASON  OF  1891-92. 


Principles  op  Economics. 

Professor  WILLIAM  W.  FOLWELL,  LL.  D. 


PART  I.,  Book  i,  PRODUCTION. 


CHAP.  II.— CONDITIONS  OF  PRODUCTION. 

See  Mill,  Chap.  YI.  pp.  99  f. 

Marshall,  Book  IV,  pp.  187  f. 

Rosclier,  Chaps.  IE- VI,  Book  I. 

Walker,  pp.  44  f. 

Newcomb,  Chap.  VI,  Book  II,  pp.  93  f. 

Gide,  Book  II,  Parts  I and  II,  pp.  96  f. 

Schoenberg,  1, 165. 

N.  B.— All  conditions  of  consumption  are  also,  more  or  less  remotely, 
conditions  of  production. 

Sec  1.  Conditions  in  NATURE. 

1.  Pliysiographical;  geographical  location,  elevation,  surface.  &t\, 

of  habitat;  navigable  waters,  harbors,  &c. 

2.  Geological;  the  soil,  as  to  depth,  general  fertility  and  adaptation 

to  particular  crops;  mines  and  deposits,  solid,  liquid  and 


3.  Zoological:  chiefly  as  suitable  to  use  and  support  of  domestic  an- 

imals. 

4.  Botanical:  general  “flora”  of  habitat;  special  adaptation  to  par- 

ticular plants,  as  wheat,  cotton,  the  olive,  the  grasses,  &c. 


Sec.  2.  Conditions  in  HUMAN  NATURE. 


A.  Natural  and  Spontaneous: 


1.  Individual  capability  and  character  of  producers: 

(a)  of  laborers:  physical,  intellectual,  moral. 

See  Mill,  100;  Marshall,  245;  Roscher.  1,  145,  § 40;  Schoen- 
berg, 1,  106;  Thompson,  R.  E.,  Pol.  Econ.,  Chap.  XIII. 

(b)  of  capitalists,  as  to  parsimony,  enterprise,  integrity,  &c. 

Not  specially  discussed  by  the  writers. 

See  Bagehot,  Lombard  Street,  early  sections;  Marshall.  671. 

2.  Social  status  of  producers: 

(a)  of  laborers:  slavery,  serfdom,  wage  system,  exclusion  from 

“society,”  &c. 

(b)  of  capitalists:  modern  “society”  tending  to  be  based  on 

wealth,  social  disadvantages  of  trading  classes  in  older 
countries,  of  Jews,  &c. 

3.  Massing  of  producers: 

(a)  Mere  union  of  numbers,  as  in  ancient  times; 

(b)  Modern  “large  production” : 

(1)  Economizing  materials, 

(2)  Saving  by-products, 

(3)  Employing  machines, 

(4)  Reaching  wide  market,  &c. 

See  Mill,  108;  Marshall,  Chaps.  VIII-XI;  Roscher, 
1,  206;  Gide.  150. 


4.  Differentiation  of  production. 

Already  suggested  under  Forms  of  Production. 


Here  remark  upon— 

(1)  “The  Division  of  Labor”: 

a.  Advantages. 

b.  Disadvantages. 

c.  Limitations. 


See  works  and  passages  referred  to  at  end  of  Sec.  4,  Chap.  1 of 
this  Book,  Forms  of  Production. 

See  also,  YVayland,  Chaps.  VI  and  VII. 

“ “ Walker.  A..  Science  of  Wealth,  Book  II,  Chaps.  II-  V . 


(2)  Separation  of  “labor”  and  “capital.” 

See  Gide,  p.  473  f.  , TTT  . n 

Roger’s.  Six  Cent  uries  of  Work  and  V ages,  1:6. 
Marshall,  Chap.  XII.  §§  1-6. 

Marx,  capital,  2,  774. 


(3)  “Division  of  capital.” 

la)  Employers,  (b)  Non-employers. 


5.  Economic  customs. 


A.  In  Agriculture: 

1.  As  to  settlement;  village  system,  manor  or  planta- 

tion system,  co-operative *systems. 

2.  Land  tenure,  allodial  possession,  tenancies  and 

leaseholds. 

3.  Size  of  holdings;  small  farming  vs.  bonanza  farming. 

4.  Cultivation  by  owners,  rent-payers,  share-takers, 

&c. 

See  Lecky,  Hist.  Rationalism,  2,  323  and  335. 

First'Ann.  Rept.  U.  S.  Comr.  of  Labor,  p.  445, 

Kent,  Comm.,  4.  411,  n.  384. 

Sismondi.  Hist.  Ital.  Republics,  2.  333  . 3 

Encyc.  Brit , end  of  art.  *•  Agriculture.” 

Arthur  Young,  Travels  in  France,  1.  403-41(5. 

Nineteenth  Century,  19,  226. 

B.  In  Manufactures. 

e.  g.  Domestic  manufacture,  little  shop  plan,  “the  fac- 
tory system,”  interchangeable  mechanism,  specu- 
lative production,  truck  system,  &c. 

See  Consular  Report  No.  58  (Nov..  1885)  for  account  of  the 
household  manufactures  of  Russia. 

Monograph  of  Col.  C.  P.  Wright  on  the  Factory  System, 
in  vol.  2,  Rept.  of  10th  Census. 

Fortn,  Rev.,  10,  42(5. 

B.  In  Commerce. 

e.  g.  The  market,  the  exchange  and  the  fair;  banking 
and  bills  of  exchange;  the  credit  system,  the 
commission  merchant,  the  commercial  traveler, 
“through”  travel  and  traffic,  the  express  company, 
department  stores,  &c.,  &c. 

B.  Artificial  and  invented  (conditions). 

1.  Economic  culture: 

A.  Old  plan  of  apprenticeship.  B.  New  plan  of  in- 
dustrial schools,  business  colleges,  expositions,  &c. 

2.  Economic  associations: 

Crafts  and  gilds,  partnership  and  corporations,  syndi- 
cates and  trusts,  trades  unions,  co-operation  pro- 
duction, profit-sharing. 

3.  Economic  legislat  ion : 

Fixing  wages,  rent  and  interest;  regulating  immigra- 
tion, regulating  land  policy,  regulating  commerce 
and  industry,  stimulating  invention,  developing  re- 
sources, diffusing  information,  &c. 


CHAP.  III.— LIMITS  OF  PRODUCTION. 

See  Moffat,  270;  Mill,  Chap.  X,  p.  144. 


Sec.  1.  In  NATURE. 

See  Syllabus  2,  under  Limits  of  Consumption. 


By  “Diminishing  returns.” 

See  Mill,  130  f. ; Marshnll,  200-212;  Perry,  286. 


Sec.  2.  In  HUMAN  NATURE. 


See  Syllabus  2,  under  Limits  of  Consumption. 

a.  Numbers;  b.  State  of  the  arts;  c.  State  of  know- 
ledge; d.  Indolence. 

Remark:  “Overproduction,”  better  named  “dispropor- 
tionate production.”  See  Ely. 


Remark: 

1.  In  Part  I,  partnership  of  man  and  nature. 

2.  Self-assortment  of  producers. 

3.  Immediate  effect  of  new  machines  and  processes.  Lavaleye’s 

suggestion. 

4.  Personal  applications. 


TOPICS  FOR  ESSAYS. 


1 The  factory  system. 

2.  Interchangeable  mechanism. 

3.  Industrial  schools. 

4-  Geological  surveys. 

5.  Bonanza  farming. 

6.  Crafts  and  gilds. 

7.  The  credit  system. 

8.  The  co-operative  coopers  of  Minneapolis. 

9.  Building  and  loan  associations. 

19.  The  commercial  traveler. 

11.  The  express  company. 

12.  The  “big  four.” 

rs.  Industrial  expositions. 


5 


“UNIVERSITY  EXTENSION.” 

DULUTH,  MINNESOTA.  SEASON  OF  1891-92. 


Principles  op  Economics. 


Professor  WILLIAM  W.  FOLWELL,  LL.  D. 


PART  II,  Book 


in,  frunnuoTT cm. 


CHAP.  1.— LEADING  PHENOMENA. 


Sec.  1.  “ The  Distribution  Question.” 

(1)  Statement:  How  ought  the  produce  of  industry  to  be  divided? 

(2)  Analysis:  (a)  the  dividend,  (b)  the  divisor. 

(3)  Postulates:  (a)  individual  right,  (b)  social  right. 

(4)  Evolution: 

See  Marshall,  Chap.  II,  Book  V. 

Cossa,  14  and  22. 

Ely,  213;  Gide.  398. 

Clark,  J.  B.,  Philosophy  of  Wealth,  61  and  107. 

Walker.  196. 

Lalor,  Cyc.  Art.  “ Distribution.” 


Sec.  2.  Ideal  Plans. 

(a)  according  to  work,  (b)  needs,  (c)  sacrifices. 

SeeCairnes,  Chap.  V,  p.  263. 

Blanc,  L.,  Revolution  de  1848,  1, 139. 
Gide,  418. 


Sec.  3.  Experiments  (actual  or  proposed). 

a,  Ancient;  b,  Early  Christian ; c,  Monasticism ; d,  Crafts  and  Gilds; 
e,  Communism;  /,  State  Socialism;  g.  Co-operation;  h,  Profit- 
sharing. 

See  Acts  of  the  Apostles,  4,  34-37, 

Woosley,  Communism  and  Socialism, 

Ely,  French  and  German  Socialism, 

Noyes,  American  Socialisms, 

Nordhoff,  American  Communistic  Societies  of  the  U.  S., 
Graham,  Socialism,  old  and  new. 

Holyoake.  History  of  Co-operation, 

Gilman,  Profit  Sharing, 

Baring-Gould,  Germany,  Past  and  Present, 

Schoenberg,  1,  89, 

Rae,  Contemporary  Socialism. 


Sec.  4.  Historic  Solution. 

A.  The  institution  of  property. 

See  Mill  Chap.  I,  Book  II,  pp.  154-174,  text,  and  footnotes  for 
references. 

Lavaleye,  Primitive  Property, 

Lalor,  Cyc.  art.  Property, 

Gide.  430, 

Fawcett,  Manual,  115. 


B. 


Competition. 

(1)  Advantages: 

a,  It  works  of  itself;  b,  as  an  economic  principle;  c,  every- 
where; d , it  is  favorable  to  industry  and  frugality;  e,  it  is 
favorable  to  character;  /,  it  is  favorable  to  liberty;  g,  it  is 
not  inherently  unjust;  h,  it  does  not  exclude  other  plans, 
so  far  as  they  may  be  practicable. 

See  Mill,  175;  Roscher,  1,  293;  Ely,  83;  Gide,  64;  Cairnes, 
272;  Thornton  on  Labour,  96;  Clark,  J.  B.,  p.  64; 
Moffat,  105;  Lalor,  Cyc.  Art.  Competition;  Mar- 
shall, 5-8;  Walker  on  Wages,  Chap.  X;  Clark,  J.  B., 
Modern  Distributive  Process. 

(2)  Objections. 

a.  Permits  inequality;  b,  extortion. 

(3)  Restrictions  and  mitigations;  {A),  through  reservations  and 
contributions  for 


a.  Government  purposes,  proper, 

b.  General  welfare;  education,  postoffiee,  &c., 


c.  Religion  and  charity, 

d.  Support  of  non-producers. 

(B),  through  associated  effort 

to  limit  or  annul: 


(a)  communism,  (b)  co-operation,  (c)  trades-unions,  (d) 
trusts,  (e)  &c. 

See  Ely,  Chaps.  III-VII,  Part  IV  , p.  228  f. 

Clark,  J.  B.,  Philosophy  of  Wealth,  Chaps.  VIII- 
XII. 

Gide,  68. 


Sec.  5.  Analysis. 


f [Nan-competitive] ; Taxes,  Education,  Charity,  &c. 
| [Proximate;  Labor  v.  Capital. 


f Professional. 


f 


Distribu-  | Competitive.  | 
tion . ■{  | 


Labor  v.  Labor.  ] Directive. 


| Ulti- 


mate; 


[ Operative. 

[ Non-Employ- 
ers. 


t 


^ Capital  v.  Capital. 


L Einyloyers. 


Sec.  6.  Proximate  Distribution. 

1.  Effected  by  competition  between  the  two  great  bodies  of  co- 

producers, LABORERS  and  CAPITALISTS. 

See  Walker,  on  Money,  Chaps.  XII  and  XIII. 

Moffat,  391. 

2.  Such  proximate  competition,  subject  to  such  modifiers  as: 

a.  The  historic  situation. 

See  Rogers,  Six  Centuries  of  Work  and  Wages,  Chap.  XIX. 
Marshall,  Book  I.  especially  Chap.  III. 


b.  Immobility  of  “ labor.” 

See  Adam  Smith.  120  f. 

Walker,  on  Wages,  Chap.  XI. 

c.  Immediate  necessities  of  “labor.” 

See  Marshall,  p.  600  f. 

d.  “ Standard  of  living.” 

See  Walker,  313  f.;  Lavaleye,  Pol.  Econ.,  p.  152;  Marshall,  p. 
738;  Gunton,  Social  Economics,  p.  80  f. ; Ely,  221  f. 

e.  Relative  numbers  of  the  two  classes;  (another  phase  of  the 

population  question). 

See  Mill,  190. 

/.  “Good  times”  and  “bad  times.” 

g.  Government:  by  all  legislative  and  administrative  acts, 
discriminating  in  favor  of  or  against  either  class,  e.  g., 
land  systems,  forest  and  mining  policy,  taxing  systems, 
monetary  systems,  “statutes  of  laborers,”  poor-laws, 
eight-hour  day,  truck  systems,  factory  laws,  &c.,  &c. 
See  Mill,  Book  Y. 

Marshall,  Book  YI,  Chap.  X. 

Fawcett,  Manual,  Book  IV,  Chap.  IY. 

Fawcett,  Essays,  II,  IV,  V. 

Walker,  on  Wages,  302  f. 

Rogers,  Six  Centuries,  Chap.  XV. 

Sidgwick,  Principles,  Book  III,  Chap.  III. 


li.  Organizations  (distributive,)  of  “labor.” 


See  Cairnes,  Part  IT,  Chap.  IV. 

Walker,  on  Wages,  Chap.  XIX. 

Mill,  Book  VI,  Chap.  V. 

Marshall,  Book  IV,  Chap.  VIII. 

Gunton,  Soc.  Economics,  Part  IV,  Chap.  VII. 
Ely,  Part  IV,  Chaps.  Ill  and  IV. 

Clark,  J.  B.,  Chap.  VIII. 

Wayland,  p.  175. 


i.  Organizations  (distributive,)  of  “capital.” 

See  Marshall,  Book  IV,  Chaps.  XI  and  XII. 
Gunton  Part  IV,  Chap.  VI. 

Ely,  Part  IV.  Chap.  IV.  p.  235. 

Walker,  on  Wages,  p.  251. 

Fawcett.  Manual,  Book  II,  Chap.  X. 

Clark,  J.  B.,  Chap.  X,  p.  174. 

j.  Also,  of  sufficient  importance  to  be  mentioned  as 


Sec.  7,  Economic  Stratification. 

See  Clark,  J.  B.,  Philosophy  of  Wealth,  p.  126,  where  this* 
phenomenon  is  treated  in  an  original  manner. 


TOPICS  FOR  ESSAYS. 


1.  Relations  of  economics  to  ethics. 

2.  The  good  in  socialism. 

3.  Crafts  and  gilds. 

4.  “Looking  backward,”  review  of. 

5.  Co-operation,  if  any,  in  Duluth. 

6.  The  Rochdale  Pioneers. 

7.  Private  property  in  land. 

8.  Benefit  features  of  trades-unions. 

10.  What  has  been  done  with  the  pine  lands  of  Minnesota  ? 


6 


“UNIVERSITY  EXTENSION.” 


DULUTH,  MINNESOTA.  SEASON  OF  1891-92. 


Principles  of  Economics. 

Professor  WILLIAM  W.  FOLWELL,  LL.  D. 


PART  II,  Book  III,  DISTRIBUTION. 


CHAP.  II.— WAGES. 

Sec.  1.  General  Doctrine. 

See  Art.  Wages,  Lalor,  Cyc.  by  Gen.  F.  A.  Walker. 
Mill.  Book  IV..  Chap.  V. 

Gide,  489  f. 

(1)  Synopsis, 

f Professional,  .*.  Fees,  Salaries,  &c. 


Wage-earners,  Directive,  .\  Wages  of  Superintendence. 

{Artisans. 

Common  Laborers. 

See  Walker,  Wages  Question,  Chap.  I. 

WAGES  are  the  wage-earners’  share  of  distributed  produce. 
(2)  Real  wages  v.  nominal  wages. 

See  Walker,  Wages  Question,  Chap.  II,  p.  12. 

Adam  Smith,  886,  McCulloch’s  note. 

Mill,  184,  Laughlin’s  insert. 

Marshall,  582. 

Lavaleye,  141. 

Ricardo,  Works,  52,  83. 

Walker,  A.,  Science  of  Wealth,  p.  279. 

Gide,  504. 


(3)  “ Necessary  Wages.”  “ Tlie  Iron  Law.” 

See  Ricardo,  Works,  Chap.  Y. 

Mill,  185. 

Ely,  224,  whole  chapter. 

Lavaleye,  143. 

Walker,  Wages  Question,  Chap.  VII,  109. 

Gide,  494. 

(4)  Wages  a share  of  produce,  and  not  a mere  substracted  portion  of 

capital. 

See  Walker,  Wages  Question,  Chap.  VIII,  128. 

Marshall,  564,  566. 

Clark,  Philos,  of  Wealth,  130. 

Gide,  499. 

(5)  Competition  the  determining  force  in  fixing  wages. 

See  Walker,  Wages  Question,  Chap.  X,  155. 

Bagehot.  Economic  Studies,  207. 

Roscher,  2,  39  f. 

Mill,  177  f. 

Gide,  492, 


Sec.  2.  Conditions  affecting  competiton  in  fixing 
wages. 

Group  I. — Conditions  relating  to  employments: 

a.  Nature:  as  being  “skilled”  or  not,  constant  or  remittent,  es- 

sential or  dispensable,  old  or  new,  dangerous  or  harmless, 
healthful  or  unhealthful,  cleanly  or  uncleanly,  easy  to 
learn  or  not,  menial  or  not,  public  or  private,  solitary  or 
social,  hand-work  or  machine-work,  day-work  or  night- 
work,  by-work  or  full  occupation,  imposing  responsibility, 
&c.,  &c. 

b.  Location:  as  home  or  foreign,  near  or  remote,  rural  or  urban, 

&c. 

c.  Number. 

See  Adam  Smith.  91. 

Mill.  Chap.  IV  of  Book  II,  p.  205  f. 

Marshall,  586. 

Fawcett,  161. 

Sidgwick,  332. 

Roscher,  § 169. 

Wayland,  182. 

Group  II.— Conditions  related  to  payment: 

a.  Time:  uncertain,  as  at  convenience  of  employer  or  demand 

of  employe;  certain,  as  at  end  of  season,  or  at  stated 
monthly  or  weekly  periods. 

b.  Manner:  in  kind,  truck,  or  cash. 

See  same  references  as  end  of  Group  I;  also,  Walker,  Wages 
Question,  p.  324  f.  the  Truck  System,  and  Marshall. 
581. 


Group  III— Conditions  related  to  laborers  themselves. 

a.  Efficiency  in  production.  See  Syllabus  4 ante,  p.  2,  for  refer- 

ences. 

b.  Sex.  See  Walker,  Wages  Question,  372. 

Mill,  213. 

Wayland,  190. 

Fourth  Annual  Kept.  U.  S.  Com’r  of  Labor,  1888,  esp. 
pp.  70-73. 

c.  Social  distribution,  causing  scarcity  of  workmen  in  some 

places  and  excess  in  others. 

d.  Numbers:  (a  phase  of  the  5 ‘population  question.”) 

Digression  on  “The  Wage-fund  Theory.” 

SeeLalor,  Cyc.,  article  “Wage-fund.” 

Walker,  Wages  Question,  Chap.  IX,  138. 

Mill,  178  f . 7. 

Marshall,  572,  note. 

Cairnes,  159. 

Adam  Smith,  880,  McCulloch’s  note. 

Gide,  501. 

Group  IV.— Conditions  imposed  by  organizations. 

A.  Of  working-men:  fixing  scale  of  wages  demanded ; limiting 
hours  of  labor;  forbidding  work  out  of  hours;  forbidding  piece- 
work; limiting  number  of  apprentices;  excluding  competition 
outside  of  certain  districts;  strikes  and  boycotts,  &c. 

13.  Of  employers:  agreements  as  to  scale  of  wages,  concerted  sus- 
pension of  employments,  lockouts,  &c. 

See  Walker,  Wages  Question,  Chap.  XIX,  385. 

Cairnes,  Part  II,  Chaps.  Ill  and  IY. 

Ely,  p.  228,  Chap.  III. 

Roscher.  2,  84. 

Sidgwick,  348-365. 

Second  Ann,  Rept.  U.  S.  Comr.  of  Labor,  1886. 

Third  Ann.  Rept.  U.  S.  Comr.  of  Labor.  1887. 

Gide,  509. 

Group  V.— Conditions  imposed  by  legislation : 

a.  Encouraging  or  restricting  migration, 

b.  Fixing  the  hours  of  labor, 

c.  Defining  employers’  liabilities, 

d.  Authorizing  Mechanics’  liens, 

e.  “Protecting”  home  labor  by  tariffs, 

/.  Regulating  “ convict”  labor, 

l/.  Establishing  factory  regulations;  as  to  sanitary  provisions, 
safety  appliances,  reports  of  accidents,  &c.,  &c. 

See  Walker,  Wages  Question,  p.  356-362. 

Marshall.  739  f. 

Lalor.  Cyc.  art.  “Factory  Laws.” 

Sixth  Ann.  Rept.  N.  Y.  Bureau  of  Labor. 

Reports  of  Mass.  Bureau  of  Labor,  at  large. 

Gide,  512. 


Group  VI.— Conditions  imposed  by  Custom: 

Especially  as  to  Fees,  salaries,  holidays,  &c.,  &c. 

See  Mill,  175  f.  esp.  215. 

Wayland.  171. 

Roscher,  § 175,  2,  82  n.  1. 

Sidgwick,  891-398. 

Sec.  3.  How  Real  Wages  may  be  Increased. 

(1)  By  individual  improvement  of  the  working  people;  a,  abandon- 

ing vices;  b , cultivating  frugality  and  other  virtues;  c,  re- 
spectful self-assertion;  d,  becoming  themselves  capitalists. 
SeeCairnes,  287  f . 

Walker,  Wages  Question,  Chap.  XVIII,  p.  346-356. 

(2)  By  social  means:  a,  the  churches;  b,  the  press;  c,  public 

opinion. 

See  Walker,  Wages  Question,  362-367. 

Ely,  656. 

(3)  By  voluntary  organizations  and  institutions; 

a,  Profit-sharing;  b,  consumers’  co-operation;  c,  producers’ 
co-operation;  d,  saving’s  banks,  &c. 

See  Gilman,  Profit-Sharing. 

Mill,  Bk,  IV,  Chap.  V,  re-written  by  editor. 

Cairnes,  280-291. 

Gide,  386-389;  519-523. 

Ely,  63  f. 

(4)  By  legislation:  a,  public  education,  including  industrial  schools; 

b,  insurance  of  workmen’s  lives  and  health ; and  other  meas- 
ures named  above. 

See  Gide  512-519. 

Walker,  Wages  Question,  168-173;  413-415. 


TOPICS  FOR  ESSAYS. 


1.  Wages  in  U.  S.  in  1865  and  1885, 

2.  History  of  the  Wage  Fund  Theory, 

3.  The  menial  status  of  domestic  servants, 

4.  Should  the  state  pay  high  or  low  salaries? 

5.  The  truck  system  and  its  effects, 

6.  Public  employment-bureaus, 

7.  Effect  of  women’s  work  on  the  wage  market, 

8.  Ought  piece-work  to  be  proscribed? 

9.  Probable  effects  of  an  8 hour  day  on  wages, 

10.  Convict  labor,  what  to  do  about  it? 


7 


“UNIVERSITY  EXTENSION.” 

DULUTH,  MINNESOTA.  SEASON  OF  1891-92. 


Principles  op  Economics. 

Professor  WILLIAM  W.  FOLWELL,  LL.  D. 


PART  II,  Book  III,  DISTRIBUTION. 


C II A IT  III.  — INTEREST. 


Sec.  1.  General  Doctrine. 

See  Lalor,  Cyc.  Art.  “Interest,”  by  Leon  Faucher;  Schoen- 
berg. 1.482;  Marshall.  Book  VI.  Chap.  VI;  Roscher, 
Book  II,  Chap.  IV;  Gide,  535,  and  any  text-books  on 
Political  Economy. 

(1)  Synopsis  and  definition: 

f “Labor”  v.  ’Labor,”  .-.  WAGES. 

I 

Ultimate  I ( INTEREST. 

Competition,  | “Capital”  f Non-employers,  < 

| V.  ! • | * * * 

[“Capital,”  | 

{ * * * * * * 

Interest  is  the  share  of  distributed  produce  obtained  by  non-em- 
ploying capitalists  for  use  of  loanable  capital. 

Remark:  The  chief  and  representative  item  is  MONEY.  In  this 
short  course  no  separate  treatment  is  made  of  other  forms  of  loanable 
capital,  as  animals,  vehicles  and  implements,  machines,  &c. 


(2)  Risk  element  in  interest. 

See  Marshall,  p.  622;  Walker,  236;  Ely.  217. 

(3)  Theories  of  interest: 

For  a full  account  and  criticism  of  the  various  theories,  see 
Boehm  - Bawerk,  Kapital  und  Kapitalzins.  Innsbruck, 
1884.  vol.  II. 

Tlie  most  important  theories,  each  presenting  two  or  more 
phases,  are: 

(a)  The  abstinence  theory, 

(b)  The  productivity  theory, 

(c)  The  fructification  theory, 

(d)  The  labor  theory. 

(e)  The  time  theory. 

(4)  Competition,  the  main  force  in  fixing  interest. 

See  Marshall.  621;  Reseller,  2.  105;  Fawcett,  456;  Wayland, 
224;  Mill,  440  f. 


Sec.  2.  Conditions  affecting  competjton  in  fixing 

INTEREST. 

(1)  Wealth:— a,  amount  of;  b,  proportion  devoted  to  production, 

i.  e.,  capital;  c,  relative  amounts  of  fixed  and  circulating  cap- 
ital; d,  relative  amounts  of  autonomous  and  loanable  capital. 
See  Roscher.  2, 102. 

(2)  The  people:— a,  moral  character;  b,  saving  habit;  c,  the  invest- 

ing habit;  d,  habit  of  prompt  payment;  e,  sentiment  in  regard 
to  usury. 

See  Walker,  A.,  Science  of  Wealth,  p.  323;  Wayland,  219; 
Roseher,  2,  128. 

(3)  State  of  industry  and  trade,  especially  of  agriculture— good  and 

bad  times— effect  of  war. 

(4)  Investment:— a,  time;  b,  convenience  as  to  collection  and  trans- 

fer; r,  supposed  safety.  See  Wayland,  p.  221. 

(5)  Government:— a.  protecting  property  rights  and  enforcing  the 

obligations  of  contracts;  b,  regulating  currency;  c,  usury 
laws. 

See  Roseher,  2.  136-144;  Perry,  370;  Walker,  336-46;  Way- 
land,  2J0;  Walker,  A..  320. 


CHAP.  IV.— RENT. 


Sec.  1.  General  Doctrine. 

(1)  Synopsis  and  definition: 

f “Labor”  v.  “Labor,”  WAGES. 

Ultimate  ! ( INTEREST, 

Competition,  j “Capital”  | Non-employers,  < 

| v.  1 \ RENT. 

I “Capital,”  I 

i * * * -*  * * 

Kent  is  the  share  of  distributed  produce  obtained  by  non-eni  • 
ploying-  capitalists  for  use  of  lands  and  other  real  property  in  pro- 
duction. 

Remark:  The  great  item  is  agricui/tuk al  gangs.  In  this  short 
course  no  separate  treatment  can  be  attempted  or  building  sites,  build- 
ings and  fixtures,  mines,  fisheries,  water  powers,  &c. 

(2)  Lands,  held  to  be  capital  Rent  assimilates  to  interest. 

See  Perry,  28;},  288;  Marshall,  671. 

(3)  Competition,  the  main  force  in  determining  rent. 

Sec.  2.  Conditions  affecting  competition  in  fixing 

KENT. 

(1)  Location  and  exposure; 

(2)  Tenure;  See  Gide,  529. 

(3)  Improvements; 

(4)  Sentiment; 

(5)  Custom;  See  Walker,  219. 

(6)  Security  of  landed  investment; 

(7)  Land  laws,  including  taxation; 

(8)  Differentiation  of  industry; 

(9)  State  of  agricultural  science  and  art; 

(10)  Physical  properties; 

(11)  Chemical  properties; 

(12)  Fixed  area. 

The  foregoing  syllabus  of  rent  being  a considerable  departure  from 
the  traditional  treatment,  few  citations  are  offered.  See  article  “Rent,” 
in  Lalor,  Cyc.,  by  II.  Passv. 


Sec.  3. 


The  Ricardian  Doctrine  of  “Economic  Rent.’ 


See  Ricardo  Works.  Cliap.  II;  Mill,  Book  II,  Chap.  VI,  p. 
232-244;  Marshall,  Chap.  IX.  § 5,  p.  6(58;  Roscher.  2, 
14  f. : Walker,  F.  A.  Land  and  its  Rent,  Boston,  1883; 
George.  Progress  and  Poverty,  148-154;  Gide.  455; 
Ely.  215;  Schoenberg.  1.  441;  Edin,  Rev.  54,  91.  In 
general,  any  text  hook  on  Political  Economy. 

(1)  Definition; 

(2)  Postulates; 

(3)  Consequences; 

(4)  Criticism; 

(5)  Conclusion. 

See  Lalor  Cyc.,  art.  Rent;  Perry.  299;  Gide,  457;  Sidgwick, 
295-300;  Patten,  Premises  of  Political  Economy, 
Phila.  1885,  21-45. 

Remarks:  The  principle  of  economic  rent  has  been  applied  by  Gen. 
Walker  to  profit,  and  others  have  suggested  its  application  to  wages,  too 
slight,  if  any  advantage. 

Economic  rent  should  not  be  confounded  with  the  “ unearned  incre- 
ment” of  land  value,  due  to  expanding  population  and  wealth  on  inex- 
pansible  territory. 


TOPICS  FOR  ESSAYS. 


1.  When  is  money  capital  ? 

2.  The  abstinence  theory  of  interest. 

3.  The  time  theory  of  interest. 

4.  The  money  market. 

5.  Western  usury  laws. 

6.  Are  we  tending  towards  tenant-farming  ? 

7.  Effect  of  machinery  on  rents. 

8.  The  old  homestead. 

9.  Carey’s  criticism  of  Ricardo. 

10.  Biography  of  David  Ricardo. 


8 


“UNIVERSITY  EXTENSION.” 


DULUTH,  MINNESOTA.  SEASON  OF  1891-92. 


Principles  op  Economics. 


Professor  WILLIAM  W.  FOLWELL,  LL.  D. 


PART  II,  Book  III,  DISTRIBUTION. 


CHAP.  V.  — PROFIT. 


Sec.  1.  General  doctrine. 


See  Lalor.  Cyc.  Art.  “Profits,”  by  Arthur  T.  Hadley. 

Mill,  Book  II,  Chap.  V,  216  f. 

Marshall.  Book  IV,  Chap.  XII  and  Book  VI,  Chaps. 

VII  and  VIII,  634  f. 

Wayland,  Chap.  XVII. 

Ely,  217. 

Lavaleye.  Book  III,  Chap.  VII. 

Gide.  Book  IV.  Part  II,  Chap  II.  477. 

Schoenberg,  404  f . 

Roscher,  Book  III,  Chap.  V. 

Gunton,  Principles,  258. 

Cherbuliez,  1,  456,  f. 

George,  Progress  and  Po\?Srty,  140-170. 


(1)  Synopsis  and  definition: 

f “Labor”  v.  “Labor,”  . 


“Labor,”  . . . WAGE-2. 


Ultimate  ! 

Competition,  “Capital”  f Non-employers, 


I V.  I 

l “Capital,”  | 


1 “Managers”  . . PROFIT. 


Profit  is  the  unascertained  share  of  distributed  produce  obtained 
by  the  managing:  capitalist  for  his  investment  of  capital,  services, 
risk  and  responsibility. 

(2)  Elements:  a,  Casual;  wages,  interest,  rent  and  wages  of  super- 

intendence. b.  Essential:  the  unascertained  residue  of 
produce. 

(3)  Rationale: 

Production,  uncertain  as  to  amount  and  quality  of  result;  de- 
mand, fluctuating;  all  are  ignorant  of  the  economic  future; 
“Labor”  and  non-employing  “Capital”  accept  ascertained 
shares  of  produce;  managing  or  “undertaking”  capitalists,  as- 
suming responsibility  and  risks  of  industry  and  business, 
obtain  the  unascertained  residue,  (with  casual  admix- 
tures as  noted  above). 

(4)  The  “Entrepreneur”  theory:  a,  statement;  b,  discussion. 

See  Walker,  244. 

Walker,  A.  Science  of  Wealth,  311. 

Ely,  170. 

Gide,  477,  f. 

Marsh  a, 11,  351. 

Bowker,  Economics,  177, 

Courcclle-Seneuil,  1,  28. 

(5)  Competition,  the  main  force  in  deterniming  profit. 

Sec.  2.  Conditions  affecting  competition  in  fixing 
profit. 

(1)  Stage  of  industrial  evolution:  a,  differentiation  of  production; 

b,  use  of  machinery;  c,  large  production,  etc. 

See  M arshall,  219-370. 

(2)  Transportation  and  monetary  facilities. 

See  Walker,  A.  3,  6. 

Bagehot,  Lombard  Street,  7,  f. 

Lalor  Cyc.,  Art.  “Transportation”  by  A.  T.  Hadley; 
also,  Art.  “Exchange.” 

(3)  Employments:  a,  number;  b,  nature  (especially  as  to  riskiness 

and  the  possibilty  of  concealing  processes);  c,  scale. 

See  Adam  Smith,  101. 

(4)  Personal  qualities  of  undertaking  capitalists. 

See  Rogers,  Six  Centuries,  544. 

Marshall,  355-358. 

i5)  Organizations  for  production. 

a,  Partnership;  b,  corporations;  c,  “combines”;  d.  govern- 
ment works;  e,  Co-operation. 

See  Marshall,  35,  § 3(53. 

Walker,  77-8,  257-9.  359  63. 

Sidgwick,  442-450. 

Lalor,  ( yc.  Art.  “Corporations.’ 


(6)  Speculation: 

A,  legitimate,  as— a,  production  in  advance  of  ascertained 
demand;  b,  use  of  credit;  B.  illegitimate,  mere  gamb- 
ling in  produce. 

SeeLalor,  Cyc.  Art.  “Speculation,”  by  A.  T.  Hadley ; also, 
art.  “Credit.” 

Fawcett,  421-429. 

(?)  Commercial  crises: 

SeeLalor,  Cyc.,  art.  “Commercial  Crises,”  by  Horace  White, 
Lavaleye,  223-231. 

First  Ann.  Rept.  CJ.  S.  Com.  of  Labor,  1886,  Chap.  II. 

(8)  Economic  intelligence  of  people. 

Sec.  4.  Profit  sharing. 

(a)  Statement;  ( b ) discussion. 

See  Gilman,  on  Profit  Sharing. 

Gide,  520,  524. 

Ely,  235-6;  also  current  periodicals. 


PART  II,  Book  III. -DISTRIBUTION. 


CHAP.  V.  Relations  between  the  shares  and  sharers 

IN  DISTRIBUTION. 


Sec.  1.  Is  THERE  A harmony  of  interest? 

See  Marshall,  704-716. 

Roscher,  163-167. 

Sec.  2.  What  is  the  general  tendency  as  to  rise  and 
fall  of  Wages,  Interest,  Rent  and  Profit 

RESPECTIVELY? 

See  Mill,  Book  IV.,  Chaps.  II.  and  III. 

Gide,  503-6,  and  539-542. 

Sidgwick,  292-294. 

Fawcett,  406-480. 

Cairnes,  216. 

Sec.  3.  I)o  Wages  and  “Profits”  vary  inversely? 

See  Mill,  226. 

Gide,  486. 

Lavaleye,  170. 

Gunton,  276. 

Fawcett,  141, 

Cairnes,  235. 

Sec.  4.  Do  Wages  and  Interest  “ Rise  and  Fall 

TOGETHER?” 

See  George,  Progress  and  Poverty,  17,  153, 179, 


Sec.  5.  Do  Wages  (and  Interest?;  fall  as  rent  rises? 

See  George,  p.  100-201. 

Patten.  Premises  of  Political  Economy,  Chap.  IV. 

Mill,  489. 

Sec.  6.  Does  the  theory  of  “Economic  Rents”  apply 
to  Profits? 

See  Walker,  247-259. 

Marshall,  451-457. 

Personal  Applications: 

1.  Live  and  let  live; 

2.  Pay  wages  promptly; 

3.  Distinguish  the  risks  of  business  from  gambling; 

4.  Pay  just  taxes  willingly; 

5.  Contribute  cheerfully  but  wisely  to  social  purposes. 


TOPICS  FOR  ESSAYS. 


1.  The  nimble  sixpence. 

2.  Large  production  and  the  rate  of  profit. 

3.  The  trading  passion. 

4.  The  Standard  Oil  Company. 

5.  Senator  Washburn’s  “ Option  bill.” 

6.  The  Board  of  Trade. 

7.  The  truth  in  the  Entrepreneur  theory. 

8.  Profit-sharing  in  Minnesota. 

9.  City  improvements  on  city  account. 

10.  “ No-rent  profi  t.” 


9 


“UNIVERSITY  EXTENSION.” 

DULUTH,  MINNESOTA.  SEASON  OF  1891-92. 


Principles  of  Economics. 

Professor  WILLIAM  W.  FOLWELL,  LL.  D. 


PART  II,  Book  IV,  EXCHANGE. 


CHAP.  I.- LEADING  PHENOMENA  and  PRINCIPLES. 

Exchange  is  here  treated  as  the  complement  of  distribution.  Dis- 
tribution determines  the  shares,  exchange  actually  and  physically  ap- 
portions them.  Both  distribution  and  exchange  are,  in  a fine  analysis, 
but  continuations  of  production,  by  which  the  proximate  results  of 
production  are  brought  to  the  doors  of  consumers. 

Sec.  1.  Forms: 

A,  barter,  sale  for  money,  sale  on  credit;  B,  home  trade, 
inland  trade,  foreign  trade. 

See  Walker,  A.,  Science  of  Wealth,  86;  Ely,  50;  Perry,  413; 
Lavaleye,  180:  Gide,  182. 

Sec.  2.  Amounts: 

See  any  available  statistics.  Note  relative  amounts  of 
home,  inland  and  foreign  traffic. 

See  Gide,  169. 

Sec.  3.  Advantages: 

To  exchanging  parties;  to  society;  to  the  world. 

See  Lavaleye,  183;  Gide,  172;  Way  land,  270-7;  Price,  63. 


Sec.  4.  The  Market: 


See  Maine, Village  Communities,  192;  Marshall,  Book  V,  Chap. 
I,  383;  Bagehot,  Econ.  Studies,  104;  Walker,  103;  Lav- 
aleye,  188;  Jevons,  Theory,  etc.,  84;  Rogers,  Six  Cen- 
turies, 138;  Bagehot.  Lombard  Street,  Chap.  1;  Rog- 
ers, Six  Centuries,  111. 

Note  the  importance  of  weights  and  measures  to  exchange.  See 
Schoenberg,  1,  425. 


Sec.  5.  “Demand  and  Supply”: 

See  Ely , 179-81 ; Walker,  92-99;  Way  land,  265;  Cairnes,  22-41; 
Perry,  158:  Mill,  254;  Clark,  91;  Macleod,  Econ.  Philos.. 
1,647;  Schoenberg,  224. 

From  the  COMPETITION  of  demanders  and  suppliers,  first, 
within  the  classes,  and  second,  between  the  classes,  emerges— 


Sec.  6.  VALUE: 

(1)  Definition:  Value  is  the  ASCERTAINED  RATIO  of  products, 

services,  and  interests  therein,  in  exchange. 

See  Cairnes,  Ilf.;  and  for  other  definitions  and  views,  Mill, 
Book  III,  249;  Sidgwick,  Book  II,  Chap.  II,  180  f.; 
Perry,  Chap.  Ill,  p.  117;  Walker,  81 ; Ely,  177;  Fawcett, 
Book  III,  Chap.  I,  305;  Wayland,  264;  Bostiat,  Har- 
monies of  Pol.  Econ.,  Chap.  V ; Bonamy  Price,  Pract- 
ical Pol.  Econ.,  Lond.  1882,  Chap.  II,  p.  33;  Bowen,  Am. 
Pol.  Econ.,  26;  Gide,  Book  I.  Chap.  II,  44  f.;  Jevons, 
Theory  of  Pol.  Econ.,  91  f. ; Denslow,  Econ.  Philos., 
Chap.  Ill,  79  f.;  Schoenberg,  1,  125  f.;  Courcelle- 
Seneuil,  1,  252;  Cherbuliez,  1,  202;  Clark,  Philos,  of 
Wealth,  70;  Lalor,  Cyc.  art.  Value,  by  H.  Passy. 

N.  B.— Distinguish  value  from  valuation  or  estimation. 

(2)  CONDITIONS  AFFECTING  COMPETITION  IN  FIXING 

VALUE. 

a.  Intensity  of  demand:  as  aroused  by  the  idea  of  utility 
real  or  supposed;  by  fashion;  by  “advertising.” 

See  Cairnes,  14-16;  Mill,  252;  Perry,  143;  Walker,  85;  Ely,  177; 
Wayland,  266-7;  Price,  52;  Gunton,  91;  Roscher,  1,  311; 
Jevons,  51. 


b.  Range  of  supply:  as  by  nature  practically  unlimited,  ex- 
pansible by  labor,  or  practically  limited;  as  actually 
appearing  in  the  market  (“visible  supply”),  or  known 
or  believed  to  be  available;  as  affected  by  artificial 
scarcity,  of  which  MONOPOLY  is  the  extreme  case. 

See  Mill,  252,  254,  259,  261;  Walker,  107;  Fawcett.  310;  Wayland. 
269;  Price,  77,  92;  Roscher,  1,  315;  Jevons,  156;  Mar 
shall,  512-545. 

C.  Cost  of  production: 

See  Cairnes,  Part  I,  Chap.  Ill;  Marshall,  398-409;  Mill,  264-275 
also,  p.285;  Perry,  Chap.  VIII,  p.  300;  Ely,  181;  Way- 
land,  266;  Lavaleye,  186;  Roscher,  1,  315-332. 

d.  Marketable  qualities: 

See  Cairnes,  141-5;  Marshall,  444;  Walker,  110,  113;  Wayland, 
266. 


e.  Sentiment: 

See  Lev,  25,  14;  Lavaleye,  187;  Ely,  188;  Walker,  116;  Maine, 
Village  Communities,  195;  Sidgwick,  397,  580. 

/.  Custom: 

See  Cairnes,  113;  Mill,  176;  Walker,  111,  115;  Price,  94;  Maine, 
Village  Communities,  190,  223. 

g.  Government  interference: 

See  Perry,  581;  Roscher,  1,  333;  Walker,  112;  Rogers,  Six  Cen- 
turies. 140,  228. 

Sec.  7.  Measure  of  Value: 

(1)  Is  it  labor? 

For  the  affirmative,  see  Adam  Smith,  38-51  and  817-28;  Mill  (?), 
265;  Bowen,  Am.  Pol.  Econ.,  27-31;  Ricardo,  Price,  2;  Marx, 
Capital,  1,  5;  but  see  p.  66. 

For  the  negative,  see  Walker,  89-92;  MacLeod,  1,  304-17,  331: 
Bastiat,  Harmonies,  &c.,  144-151;  Price,  56-60;  Perry,  153; 
Sidgwick,  62-3;  Bagehot,  Econ.  Studies,  119;  Denslow,  84; 
Jevons,  Theory,  157;  Scudder,  Labor-Value  Fallacy,  Chi- 
cago, 1884;  Rae,  Contemporary  Socialism,  1476. 

(2)  Is  there  any  measure? 

See  Roscher,  1,  342;  Price,  60,  56;  Walker,  A.,  138;  Lavaleye, 
190;  Wayland,  264;  Perry,  153-7;  Sidgwick,  56-65,  and 
65-69;  Clark,  J.  B.,  Philos,  of  Wealth,  74. 


Sec.  8.  Price: 

The  money  equivalent  of  the  market  unit  of  products 
and  services.  Price  is  involved  in  the  discussion  of 
value,  and  some  writers  use  the  two  terms  as  if 
virtual  synonyms. 

See  Cairnes,  Parti,  Chap.  V,  97-115;  Fawcett,  305;  Ely,  179; 
Lavaleye,  184;  Walker,  85,  135;  Price,  372;  Roscher, 
Book  II,  Chap.  II,  303;  Walker,  A.,  189-99;  Patten,  art. 
**  Stability  of  Prices,”  in  Vol.  4,  Pubs.  Am.  Econ. 
Assn.;  Lalor,  Cyc.  art.  “Prices,”  by  W.  C.  Ford; 
Clark,  75. 

Tooke  and  Newmarch,  History  of  Prices,  6v,  8o.,  is  the  authority 
in  English.  See  also,  Roscher,  Book  II,  Chap.  IV,  381;  also, 
Mulhall,  History  of  Prices,  since  1850. 


TOPICS  FOR  ESSAYS. 


1.  The  foreign  and  inland  trade  of  the  United  States  compared. 

2.  Commerce  as  a civilizer. 

3.  The  mediaeval  fair. 

4.  The  Suez  canal. 

5.  “A  thing  is  worth  what  it  will  fetch.” 

6.  Land  monopoly  and  land  value. 

7.  Possible  effect  of  statistics  on  values. 

8.  “Gregory  King’s  law.” 

9.  Discuss  and  explain  the  phrases,  natural  value  or  natural  price; 
market  value  or  market  price;  normal  value  or  normal  price. 

10.  Value  is  “the  quantity  of  human  labor,  measured  by  time,  which 
on  the  average  is  requisite,  by  the  implements  generally  used,  to  pro- 
duce a given  commodity.”— Gronlund.  Criticize  this  definition. 


Note.— Attention  is  called  to  the  essay; 

What  makes  the  Rate  of  Wages?  by  Mr.  Edward  Atkin- 
son, in  his  book,  Distribution  of  Products;  Putnams, 


10 


“UNIVERSITY  EXTENSION.” 

DULUTH,  MINNESOTA.  SEASON  OF  1891-92. 


Principles  of  Economics. 

Professor  WILLIAM  W.  FOLWELL,  LL.  D. 


PART  II,  Book  IV,  EXCHANGE. 


CHAPTER  II.— INSTRUMENTS  OF  EXCHANGE. 
Sec.  1.  Money— that  is  to  say,  metallic  money. 

Money  can  be  treated  here  only  in  its  universal  aspects.  Govern- 
ments have  so  much  to  do  with  money,  that  local  and  temporary  details 
are  properly  and  conveniently  assigned  to  the  course  on  public  econ- 
omy. For  example,  the  government  establishes  the  “money  of  account,” 
the  denominations  of  coins,  their  weight  and  fineness,  and  their  respect- 
ive legal  tender  quality.  The  governments  also  select  the  metal,  or 
metals,  for  the  principal,  subsidiary  and  minor  coins,  and  monopolizes 
their  manufacture.  The  government  may  also  regulate  or  determine 
the  volume  of  money.  See  Proceedings,  International  Monetary  Confer- 
ence, Paris,  1878,*  p.  741,  note  of  S.  Dana  Horton,  on  “The  Position  of  Law 
in  the  Doctrine  of  Money,”  and  per  contra,  Perry,  845. 

*See  same  Pub.,  p.  737,  for  a Bibliography  of  money. 

(1)  Historical: 

a.  Prototypes;  shells,  skins,  cloth,  leather,  cattle,  slaves, 

&c.,  &c. 

b.  The  money  metals;  their  natural  occurrence,  physical 

properties,  primitive  use. 

c.  Coinage,  early  traditions,  later  developments. 

d.  Supply  of  the  precious  metals. 

See  Del  Mar’s  History  of  the  Precious  Metals,  London, 

1880,  and  History  of  Money, ; Jacob’s 

Historical  Inquiry,  . . Phila.,  1832;  Walker,  on 

Money,  Parti;  Colwell,  Ways  and  Means  of  Pay- 
ment, Chaps.  II-IV;  Leake,  Eng.  Money,  London, 
1793;  Seyd,  on  Bullion  and  ....  London,  1868, 
Parti;  Jevons,  on  Money  and  ....  London, 
1876,  Chaps.  IV- VII;  Roscher,  1,  351-362;  Adam 
Smith,  33  f.;  Macleod,  Principles,  . . . 1,362-368: 
Denslow,  333-342;  Schoenberg.  1,  239-243;  Fawcett, 
Book  III,  Chap.  V;  Perry,  325-8,  334-349;  Gide,  186; 
Wayland,  289-93;  Lalor,  Cyc.  arts.  Money,  Gold, 
Silver  and  Coinage;  Sumner,  History  of  Am.  Cui- 
rency,  3-13. 


(2)  Functions: 

a.  Intermediary  embodiment  of  wealth. 

, b.  Universal  instrument  of  purchase. 

c.  Basis  of  contract  and  deferred  payment. 

d.  Means  of  final  payment  and  absolute  liquidation. 

e.  “Standard  of  values.” 

SeeWalker,  on  Money,  Chap. I ; Roscher,  1, 340-6;  Ricardo. 
Works,  397-404;  Mill.  Book  III,  Chap.  VI,  286;  Bow- 
en, 237-241;  Perry,  314-325,  328-334;  Price,  360-367; 
Lavaleye,  189;  Wayland,  284;  Gide,  190;  Schoen- 
berg, 237;  Jevons,  Money,  Chap.  Ill;  Chevalier,  . . 
Value  of  Gold,  . . . 34-37;  Colwell,  121-123. 

Note.— “ Standard  of  values,”  a convenient  but  inexact  expres- 
sion. See  Jevons,  on  Money,  Chap.  25,  for  “ tabular  standard 

of  value.” 

(3)  Value  of  money; 

See  Mill,  Book  III,  Chaps.  V and  VI;  Walker,  Money, 
244-253;  Roscher,  1,  363-366,  374-389;  Wayland,  285; 
Adam  Smith,  337;  Price,  373;  Fawcett,  348;  Perry, 
316,331,336;  Sidgwiek,  Book  II,  Chap.  V;  Ricardo. 
226;  Fawcett,  W.  L.,  Hand-book  of  Finance,  134  f. 

(4)  Amount  of  money  needed: 

See  Adam  Smith,  236;  Roscher,  1,366-373;  Walker,  Money, 
48-9,  57-63,  73-4,  81-4,  94-8;  Colwell,  118;  Jevons, 
Money,  Chap.  26,  335;  Walker,  Money,  Trade  and 
Industry,  Chaps.  IV  and  V,  and  Walker,  on 
Money,  57-75. 

(5)  Money  and  prices: 

See  references  under  “Price,”  in  syllabus  9,  ante;  also, 
Walker,  Money,  229;  Colwell,  Chap.  19;  Jevons, 
Investigations,  119-150;  Fawcett,  W.  L.,  Hand- 
book, 130  f..  265-7;  Roscher,  1.  385;  Walker,  Money, 
57-73.  For  a Bibliography  of  Money  and  Prices, 
see  Jevons,  Investigations,  303-414. 

(6)  Advantages  of  money: 

a.  Saves  time. 

b.  Saves  wealth. 

c.  Promotes  just  exchanges. 

d.  Promotes  peace  by  liquidation. 

e.  Renders  travel,  commerce  and  missions  possible. 

/.  Foundation  of  credits,  &c.,  &c. 

See  Walker,  on  Money.  14-19,  79-84,  20,  220;  Roscher,  1,  347. 

(7)  Disadvantages: 

a.  Expense  of  coinage,  and  wear  of  coins. 

b.  Difficulty  of  storing  and  transporting  large  sums. 

c.  Supply  precarious,  and  demand  fluctuating. 

d.  Loss  of  interest. 

e.  Difficulties  growing  out  of  the  use  of  two  metals  for  prin- 

cipal coinage.  Note,  “ Gresham’s  Law.” 

See  Jevons,  Money,  200;  Walker,  Money,  Trade  and  In- 
dustry, Chap.  IV ; a general  reference  only  can  be 
made  to  the  extensive  literature  of  “ Bimetall- 
ism,” but  see  Walker,  on  Money,  and  art.  “Money,” 
in  Lalor,  Cyc. 


Sec.  2.  Paper  Money. 

Printed  promises  to  pay  MONEY,  issued  by  or  authorized  by 
governments. 

(1)  Historical: 

See  Walker,  on  Money,  Part  II,  Chaps.  15  and  16,  and  Part 
III,  Chaps.  19-21;  Sumner,  Hist,  of  Am.  Currency;  Col- 
well, Ways  and  Means  of  Payment,  Chaps.  13, 14-17; 
Fawcett,  W.  L.,  Hand-hook  of  Finance,  27-52;  Lalor, 
Cyc.  art.  Paper  Money;  Jevons,  Money,  196;  Perry, 
Chap.  10,  p.  377;  Bowen,  Chap.  XV. 

(2.)  Occasions  or  issue: 

a.  In  great  natural  crises,  to  effect  forced  loans. 

b.  When  supply  of  metallic  money  is  deemed  insufficient. 

c.  In  “boom  periods”  under  speculation  impulse. 

See  last  references. 


<3)  Synopsis— 


A.  Paper  Money,  fully  secured: 


B. 


C. 


1.  In  coin;  e.  g., 

“Bank  money”  of  Amsterdam,  &c., 
U.  S.  gold  and  silver  certificates, 


“Convertible.” 


2.  In  coin  and  u securities” ; e.  g., 

Bank  of  England  notes, 

3.  In  securities  or  property; 

U.  S.  National  Bank  notes, 

French  assigDats— (early  issues), 

Partly  secured,  in  coin;  e.  g., 

U.  S.  Bank  notes,  1791-1811,  &c., 
European  Gov’t,  bank  notes, 

Old  State  Bank  notes, 
“Greenbacks,”  since  1879, 

Unsecured;  e.  g.. 

The  “Continental  currency,” 
“Greybacks,” 

“Greenbacks,”  up  to  1879. 

See  Jevons,  Money,  Chap.  18. 


(4)  Advantages  and  dangers  of  paper  money  of  different  kinds. 

See  Walker,  Money,  290,  37?,  517;  Roscher,  1,  4^9;  Wayland, 
348-353;  Lavaleye,  219-23;  Price,  Chap.  XIII;  Bowen, 
242-7;  Sidgwick,  295-8;  Jevons,  Money , 214, 230-7 ; Mann, 
C.  A.,  Paper  Money,  the  Root  of  Evil,  N.  Y , 1872,  esp. 
Chaps.  8-14;  Jevons,  Investigations,  297-302;  Walker, 
A.,  Science  of  Wealth,  168-228;  Gide,  214-234;  Walker, 
Money,  Trade  and  Chaps.  VIII  and  IX. 


Sec.  3.  Money— paper. 

(1)  Of  Credit  in  general; 

See  Mill,  Rook  III.  Chaps.  VIII  and  IX;  Walker,  money 
65-8;  Colwell,  Chap.  VII;  Jones,  money.  Chap.  XVI 
Roscher,  Book  I,  Chap.  V;  Wayland,  Chap.  XXI 
Gide,  Book  II,  Chap.  VII;  Fawcett,  Chaps.  X and  XI 
Schoenberg,  285-319;  Lalor  Cyc.,  Art.  “Credit.” 


(2)  Synopsis: 

A.  Private  (including  corporate)  Credits. 

I.  Evidences  of  debt,  e.  g., 

Book  accounts. 

Promissory  notes,  and  bonds. 

Certificates  of  deposit, 

Certificates  of  stock. 

Drafts  and  Bills  of  Exchange,  &c  , &c. 

II.  Evidences  of  ownership,  e.  g., 

Bills  of  Sale, 

Warehouse  receipts, 

Bills  of  lading,  &c.,  &c 

III.  Evidences  of  “right,”  e.  g , 

Checks, 

Due  bills  and  orders, 

Railway  tickets, 

Postage  Stamps,  &c.,  &c. 

B.  Pobdic  Credits,  e.  g., 

The  bonds  of  National  State  and  Local  governments. 

C.  Private,  supported  by  Public,  e.  g.. 

Union  Pacific  R.  R.  bonds,  interest  guaranteed  by  U.  S. 
See  last  references. 


PART  II,  Book  IY,  EXCHANGE. 


CHAP.  III. -MECHANISM  OF  EXCHANGE. 

(1)  The  whole  personnel  and  apparatus  of  “trade  and  transporta- 

tion” may  here  be  included,  although  further  treatment  is 
unnecessary.  See  Wayland,  275;  Schoenberg,  269,  432. 

(2)  Banks  and  banking: 

a.  History;  See  Encyc.  Brit..  Art.  “Banking;”  Lalor  Cyc  , Art. 

• Banking  (in  the  United  States),”  by  Hon. 
John  Jay  Knox;  Colwell,  several  chapters. 

b.  Functions: 

a.  Discounting;  b.  receiving  deposits;  c,  dealing  in  coin,  bul- 
lion and  exchange;  d,  loaning;  e,  issuing  notes. 

See  Rev.  Stat.  U.  S.  1878,  § 5136,  f 7;  Lalor  Cyc.,  Art.  Banks, 
Functions  of;  Walker,  Money,  Trade  and  . . . Chap.  X. 

c.  Theory  and  Practice;  A.  Single  Banks; 

See  Dunbar.  Theory  and  Practice  of  Banking,  N.  Y,  1891; 
Bolles,  Practical  Banking;  Schoenberg,  319-369;  Lalor 
Cyc.,  Art.  “Banks”;  Walker,  Money,  Chap.  XIX; 
Jevons,  Money,  Chaps.  XX-XXII. 

B.  Affiliated  banks: 

a,  Collections;  b,  Transmission  of  funds;  c,  Clearings. 


